Auto Insurance Consumer Rights

• You cannot be denied auto insurance for unfairly discriminatory reasons… Massachusetts insurers may not deny you auto insurance based on your gender, race, creed, national origin, marital status, religion, age, occupation, income, principal place of garaging your car, education or home ownership.

• You cannot be denied auto insurance based on your credit history…Companies may not deny you automobile insurance based on any credit information contained in a consumer report that is obtained from a credit reporting agency.

• You have the right to know the basis for a company’s denial of your application for insurance…Insurance companies can refuse to offer you coverage based on non-discriminatory grounds, but they must identify the reasons for your denial. If you believe the insurer’s refusal is unlawful, you should file a written complaint to the Division of Insurance.

• You have the right to coverage even if an insurer declines to give you a policy…If you cannot find an insurance company willing to issue a policy, you may obtain coverage through the Massachusetts Automobile Insurance Plan (MAIP). An insurance agent can help you apply for coverage through the MAIP. The MAIP will assign you to an insurance company that will provide you with insurance for up to three years.

• You have the right to select certain insurance policy periods…Most companies offer policies for one-year periods, but some offer periods of 6 months or 2 years. However, it is important to note that any companies that agrees to offer you a policy must provide you with a one-year policy if you ask for it.

• You have the right to have coverage under your automobile insurance policy regardless of who is driving you car provided you gave your consent to the driver…In most cases, you policy covers any accident involving your car even when it is driven by someone else with your permission. Your policy will not provide bodily injury or property damage resulting from an accident when someone drives your car without your consent. If your car is stolen, comprehensive coverage will pay to repair any damage to your car if recovered, or its actual cash value at the time it was stolen. If someone else regularly uses your car, they must be listed on your policy.

• You have the right to travel and have your coverage follow you…Your policy’s bodily injury protection (part 1) only applies to accidents that occur in Massachusetts. In order to have bodily injury coverage outside of Massachusetts, you must purchase the optional coverage part 5, which will follow you everywhere in the United States and Canada.

• You have the right to cancel your policy anytime…You can shop for different insurance at any time, not just when the policy is up for renewal. If you find a better price or coverage that better suits your needs, you are free to cancel you old policy and seek a refund for any unused premium. However, be aware that if you cancel a policy before if expires, the company may charge you a penalty.

• You have the right to change you coverages and policy limits at anytime…You can change your coverage at any time, even if the policy is not up for renewal. If you lower your limits you have the right to a refund for any unused premium.

• You have the right to prompt and fair handling of claims…You may ask about any payments made to others by your company and charged to your policy. If your claim is denied, the company must provide you with a written explanation for the denial.

• If you are in an accident and your insurance company finds you “at fault”, you have a right to an appeal before the Board of Appeals…Your insurance company must notify you if it has made the decision that you are more than 50% at fault in an accident. If you believe that you were not more than 50% at fault, then follow the instructions on the Surcharge Notice to appeal. There is a $50 fee to appeal. You must file within 30 days of receiving your Surcharge Notice.

• You have the right to a notice of cancellation…An insurance company can cancel your policy before its renewal date in some limited circumstances. The company must give you at least 20 days notice before cancelling your policy and this notice must specify the reason for the cancellation. If you receive a cancellation notice for non-payment of premium, you have until the date the cancellation is to take effect in which to pay the minimum amount due to prevent the cancellation.

• You have the right to appeal a cancellation of insurance…If an auto insurance company cancels your insurance, you can file an appeal with the Board of Appeals, You should start shopping for insurance from another company immediately, even if you have not had your appeal hearing, so you are not left without coverage. You should never drive your car without insurance.

• You have the right to a notice of non-renewal…An insurance company may decline to renew your policy for a number of reasons. The insurance company must issue a non-renewal notice directly to your agent at least 45 days prior to the expiration of your policy. This notice must specify the reason for non-renewing the policy.

• You have the right to keep private the personal information you give to your agent and insurance company…Insurance companies and agencies are required by law to have procedures in place that protect the privacy of your information. Your insurance company must provide you with a notice of these procedures.

• You have a right to file a complaint with the Division of Insurance…The Division of Insurance is available to help you with questions or complaints about all types of insurance policies, companies and agents. You can speak to a representative by calling 617-521-7794.